403b plan employer match at age 21

I am trying to set up a 403b plan in BN15. Employees can contribute to the plan prior to age 21 but are eligible for the match only after turning 21. The employer match is based on the percent the employee is contributing.

Do I need 2 plans with different entry rules based on minimum age?

I would appreciate any guidance anyone can give.

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Comments

unknown

We have a non qualified plan that only matches after a specific salary is reached and we have to manually turn the match on once they hit the threshold on a PR deduction/contribution screen. I would think it would be the same.

greg-pelz

Our plan manages both the emloyees prior to age 21 and those 21 and older (eligible for employer contribution). We have 2 employee groups (using birthdate) and the groups are specified on the contribution tab (from BN15.1 which takes you to BN18.7).

unknown

We have defined a user field called "Eligible for Match date". To be eligible for a match, our employees have to be 21 years old and have worked at least 1 year with at least 1000 pension hours in that year. If an employee works the 1000 hours, but is not age 21, this field is populated with the date in the future that the employee turns age 21. Every payperiod I have to manually update the date range in the "benefit eligible" group so that employees are not given the match before they turn age 21.

I have just finished testing for a new match plan that we are implementing in September. It is much more complex than our current plan in that we will have 3 different tiers with different match percentages. The tiers are based on pension years of service. We also allow both 403b (pretax) and 403b Roth (after tax) deferrals, and give a match on both.

I created 4 employee groups to be used on the contribution tab so that employees receive the correct match %. In order to automate the move from one tier to the next, I created a personnel action that is used to change the user field where "pension years" are stored. Then I created a change rule based on the personnel action.

This was a complex set up, but it works!!

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